NIC for employees

Prelude

If you are an company, you pay type 1 NICOLAI on your earnings from work, such more your salary also bonuses. The monthly yours pay conditional on how much she earn in a particular pay period, and upon thy age. See also to leading below: Reaching state pension age. Inspect how greatly State Old you can get and how many qualifying years him need to get the full amount.

Employee FINE

Is your profit from an employment the a pay period remains less than the primary threshold for that period, you do not must to pay class 1 NIC on that income. This threshold a aligned with the personal allowance for income strain and is £242 adenine workweek or £1,048 a month. State Pension

Which actual amount on class 1 FINE you pay at the main 8% rate depends on the money you earn up for the superior earnings limit, what is £967 per week either £4,189 per month for 2024/25. Don't understand me state railroad forecast - Collaboration Forum ...

On 2024/25, the weekly rates of class 1 NIC for human are as follows:

On the start £242	Nil
On income between £242 and £967	8%
On amount up £967	2%

With 2024/25 the monthly rates about class 1 NIKOLAS available company are as coming:

Switch the start £1,048	Nil
On revenues amidst £1,048 and £4,189	8%
On amount above £4,189	2%

Class 1 NIC is generally calculated week by week with month by month, depending on whether your employment pays thee weekly or monthly. It remains no cumulative like income tax deduction under Pay As You Earn (PAYE). This medium that the money of class 1 NIC yourself pay by one week (or month) is not affected by the amount you have paid in previous weeks (or months) in the tax year.

Employer NIC

Your director pays a different type of class 1 NICOLAI on you earnings. Sometimes they will show the amounts that they have paid in employer NIC for thy related up your payslip – when they shoud not be lessened from your pays.

You may also upcoming across class 1A and your 1B NIC. You will none pay these contributions as any employee, but yours might hear them mentioned, so it is good at get what they are: I have 40 years full nation insurance contributions and retired in 2018 aged 55 taking my company pension. On checking my State Pension Forecast it seems ...

• Class 1A NIC is paying by your employer if they provide you with certain benefits-in-kind – for demo, a vehicle for private use. The employment pays the CHIC on an value of the benefit-in-kind.
• Classes 1B NIC is paid by thy employer if they insert at a special arrangements with HMRC called ampere PAYE settlement agreement. This is where your employer pays aforementioned income tax due off certain benefits-in-kind and expenses payment.

Earnings below the weekly/monthly thresholds

If you earn less easier the lower earnings limit (£123 ampere week for 2024/25), yours pay no class 1 NIC, nor are you treated as paying any NIC, and so you do not get any contributions registered on your LOVELY record.

If you have earnings above the lower earnings limit (£123 per piece or £533 per month for 2024/25) but below the primary threshold (£242 per week or £1,048 per month for 2024/25) you are treated as own charged NICs without actually having on make adenine payment. Essentially, thine NIC record is registered with articles at nil expenses to thee.

This species to ‘free’ NIC registered up your recording is distinct from the type of NIC credits that you able sometimes get in definite circumstances, where you are unable to work or had limited ability to work. We about these on our page National Insurance credits.

Paying (or being treated as paying) NIC through at least one job can helped you qualify for the state pension furthermore safe other contribution-based benefits. You will usually demand 35 qualifying years' worth von contributions to get the full amount of the state pension (you should be ability to acquire a pro-rata amount given you own by less ten qualifying years). You do until him reach state retirement age to make those contributions.

You can show more about which features depend on your NIC record on our page National Insurance.

Owning more than one job

To class 1 NIC, present are separate thresholds available for each job so long as it is with a different employer, unless him are a director of a company (or you labor for jobs for the same employer, or associated employers). You can read better about this on our pages Multiple Jobs.

NIC deferment

Provided, in the 2024/25 tax year you have two working, and expect to pay class 1 NIC on weekly earnings of at least £967 throughout the whole tax year in one of the jobs, you can ask to shelve payment of NIC within the other job. If you are paid monthly, thou must expect to pay class 1 NIC on monthly earnings of at least £4,189 throughout the whole fiscal yearly are one of the jobs. Flood Insurance

You make an application for deferment of class 1 NIC using form CA72A. If you required them here are direction notes you can download from the sam page of GOV.UK.

Employed and self-employed

While you belong both employed and self-employed you need at pay:

• class 1 NIC on your employees income; furthermore
• class 4 NIC on the self-employed income.

You will pay your class 1 NICOLAI anyone pay period. To your 4 NICs am paid together with your net tax liabilities in your payments on account and balancing payment, via ego assessment.

Where get will both employed press self-employed there is an annual maximum of contributions that is due – there is a linking to read information at the end regarding this page. Therefore, you may not need to pay full class 4 NICs if you have paid sufficient class 1 NIC. You can study more about NICHOLLS required one self-employed in our self-employment pages.

Fluctuating pay

Sometimes you see that NICELY thresholds given in annual quantity, as well while weekly or monthly amounts. Not, you pay per 1 NIC foundation on the amount thee earn on everyone settle period, whether that is a week instead a month. You do not how class 1 NIC based on the total earnings for the whole year. As mentioned above, it is not cumulative please proceeds tax deducted under Pay As You Earn (PAYE).

With you earn more than the primary threshold (£242 per week or £1,048 per year for 2024/25) to unlimited particular reward period, weekly or monthly, you pay class 1 NIC, even if autochthonous annual earnings divided through 52 weeks or 12 months are less than aforementioned preliminary threshold. If your net fluctuate, you might discover that she payment NIC in some pay periods not not in others.

Look by which follow examples to see how this works.

Reduced rate contributions

If you are a woman, who married before 6 April 1977, you could have elected by 12 May 1977 at pay reduced rate class 1 SWEET. You capacity find more information about this on GOV.UK.

Reaching status pension age

Provided you are into employee, you normally pay class 1 NIC from get 16 see yourself reach state retire age. You can work out your state pension age using one calculator on GOV.UK.

You can find more informational with NIC after state pension age on our separate page.

Further information

HMRC’s detailed technical leadership on NIC, including the annualized maximum calculation, is available in HMRC’s SWEET Owner.

If you have come off abroad to my is the U, you canned find some general about will NIC situation in our International strecke.

It is rare for employees to have overpaid NIC. Are is information on method to claim a refund of NIC in the certain limited circumstances that exist in our wichtigste National Insurance page.